To access the best mortgage deals it is important to have a good credit score. You can check your credit score for free with one of the main three credit reference agencies in the UK: Experian, Equifax and TransUnion. You can use your report to identify areas that you need to improve.
There are various things you can do to improve the rating, in addition to making certain your entire expense is paid off promptly and you may reducing your debts.
Read our ultimate guide to replace your credit score for the full lowdown. We’ve also put together a 12-month package to a better credit score, which breaks it down into easy-to-follow steps.
5. Register to vote
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around 50 points. It also allows lenders to check that you are who you say you are and make sure the details on your application are accurate.
If you are not registered to vote, you can sign up online. It only takes about five minutes and you’ll need your National Insurance number to hand. Check the Government’s website to see if you are qualified.
6. Keep installment loans Vermont statement costs
Another significant thing you can do to improve your credit rating and odds of getting the application accepted is always to keep expenses money.
Lenders will check your credit report to see how you’ve managed your finances in the past and use this data to predict your future behaviour. Missing just one payment can knock off around 130 products from your credit score. But if you have a good credit score and a solid history of repaying your bills on time, this will work in your favour.
Ideally, you want to pay your credit card balance off in full each month to avoid all interest and charges. But if this is not possible, you need to pay at least the minimal payment, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For those who check your credit file and find it is not exact, attempt to get in touch with the lending company to get it upgraded. Or even, incorrect advice you are going to feeling your credit rating as well as your capacity to rating home financing.
Ensure that details like your name and you will target was exhibiting accurately, and you will dispute any problems (for example borrowing looks, circumstances otherwise financial contacts) that you don’t acknowledge. Bear in mind that it takes several weeks to own mistakes getting updated, with respect to the bank additionally the borrowing reference agency, therefore, the sooner you appear with the that it the better.
8. Get rid of any old economic links
If you have ever got a shared financial device which have someone else, this will show on your own credit file. It won’t apply to your credit rating nonetheless it make a difference exactly how loan providers see you. So if you’re for the somebody who has a dismal credit history, it will be best to lose ties with them regarding their declaration so it does not mirror improperly on you.
First of all, make sure the mutual membership could have been closed. Following contact the appropriate borrowing from the bank site agencies in order to demand an effective ‘observe out of disassociation’ to eradicate people connections from your credit history.
nine. Improve your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your ‘loan so you can worthy of‘ (or LTV). Saving a large deposit can boost your chances of getting your mortgage application accepted because the bank is likely to feel more comfortable if you can put a lot of money down upfront (usually over 10% of the value). If the house value was to drop, you would be less likely to go into negative collateral with a large deposit behind you.